What is money? What is currency? Is there a difference? And what gives us the ability to consume?
Some would argue its currency, others would say it's money, but I would say neither. If you really think about it, the only thing that gives us the ability to consume is our own production.
Without the goods and services in the economy, all we have are green pieces of paper that become worthless.
It's our productivity that gives the green pieces of paper value. If you think about currency in these terms, a reflection of what you've produced, the bigger economic picture becomes clear.
Currency is beneficial in the sense that it allows us to easily trade what we produce for what others produce. And money is even more important in that it allows us to do everything a currency does, but it also maintains the stored value of our excess production.
In this MUST SEE video about money, currency and production I'll discuss the following:
- Currency vs Money basics
- Production equals consumption (and only production)
- How this plays out in the real world and how you can use this knowledge to build your wealth and thrive in any situation!